UCP 600
Category: Payments
Definition (plain English)
UCP 600 is the ICC rule set commonly used for documentary credits, defining bank examination standards, document handling, and key LC responsibilities.
Why it matters commercially
LC teams need to know the governing rules because banks examine documents, not the physical goods, and discrepancies are judged against these standards and the LC wording.
Example
The export team changed invoice wording before shipment because the LC subject to UCP 600 required an exact goods description and latest shipment date.
Common mistake
Assuming UCP 600 makes the bank check product quality, contract performance, or customs acceptability instead of document compliance.
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